Jardine Matheson Holdings Ltd. (JM), the owner of hotels and groceries around Asia, dropped by the most since August, extending its retreat from a record closing high last month amid concern valuations have become stretched.
Jardine Matheson fell as much as 4.5 percent to $59.75, the most since Aug. 8, before trading at $59.98 as of 3:23 p.m. in Singapore. The shares were the biggest drag on the benchmark Straits Times Index, which was down 0.8 percent. The stock has retreated about 13 percent since closing at an all-time high on May 16, which triggered a downgrade from Credit Suisse Group AG four days later.
“We downgraded the stock a few weeks back because we thought their valuation were looking quite rich,” said Gerald Wong, an analyst at Credit Suisse in Singapore. “There are definitely macroeconomic concerns about some Southeast Asian markets like Indonesia, where the Jardine Group has got significant exposure to.” The brokerage cut its rating on Jardine Matheson to neutral from outperform on May 20.
Indonesian stocks declined today. Rupiah forwards touched the lowest level in more than three years and foreign investors sold the nation’s stocks for the 12th consecutive day. Jardine Matheson unit Jardine Strategic Holdings Ltd. (JS) owns 72 percent of Jardine Cycle & Carriage Ltd. (JCNC) as of March, according to data compiled by Bloomberg. Jardine Cycle gets about 89 percent of revenue from Indonesian automotive distributor PT Astra International.
The conglomerate also has interests in Dairy Farm International Holdings Ltd. (DFI), the owner of Cold Storage, Giant and Wellcome supermarkets, and hotel operator Mandarin Oriental International Ltd. (MAND)
Jardine Cycle dropped 3.9 percent to S$41.92, heading for a one-year low. Dairy Farm lost 0.8 percent to $12.40, while Mandarin Oriental slipped 0.6 percent to $1.75. Hongkong Land Holdings Ltd. (HKL) fell 3 percent to $6.52, set for its lowest close since Dec. 5. Jardine Strategic declined 2.7 percent to $37.16.
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